“Several pet-related stocks saw significant gains today in an unexpected market turn, apparently sparked by a mysterious tweet from social media influencer and GameStop bull trader Roaring Kitty (also known as Keith Gill).
The tweet, which featured only a cartoon image of a dog, seemed to trigger a flurry of buying activity in the pet care industry, leading to immediate spikes in various major pet care stocks.
According to Google Finance data, Chewy, Inc.’s stock price surged by 33% in approximately 15 minutes. At the same time, PetMed Express, Inc.’s stock rose by over 7%, and Petco Health and Wellness Company’s stock climbed 14%, all following Roaring Kitty’s tweet featuring a cartoon dog. In all cases, the price increases are not expected to last long.
Roaring Kitty (also known as DeepFuckingValue) gained widespread attention and acclaim during the GameStop stock frenzy in early 2021.
Gill is an investor and popular YouTuber who has been a central figure in the Reddit-driven trading phenomenon, which resulted in the surge of GameStop’s stock price in 2021 and sparked a broader meme stock phenomenon. Since then, his analytical abilities and charismatic online persona have made him a significant influencer in the stock market, particularly among retail investors.
He posted a cartoon dog picture on Twitter on Thursday, with no accompanying text. Despite the lack of context, the tweet was enough to generate enthusiasm among his followers and the broader market, leading to significant increases in pet-related company stock prices.
Gill is best known for the GameStop bull market, and his tweets, Reddit posts, and YouTube live streams have led to major fluctuations in GME’s stock price over the past two months, including a resurgence after a three-year hiatus.
Traders may hope that he will expand his focus beyond video game retailers. However, there is another potential angle here: the current CEO of GameStop, Ryan Cohen, is the founder and former CEO of Chewy. Given Roaring Kitty’s penchant for sharing emoticons with hidden messages, some traders may speculate on this historical connection.
Following Roaring Kitty’s tweet, the surge in pet stocks highlights the ongoing influence of social media and meme culture on the stock market. This phenomenon has been a focal point of discussion among market analysts, as stocks gain significant value based on viral trends and social media posts, rather than traditional financial indicators.
Veteran New York Stock Exchange floor trader Peter Tuchman, also known as “Wall Street’s Einstein,” issued a stern warning this week regarding the continued GameStop trading frenzy.
On Wednesday, Tuchman, in an interview with Yahoo Finance, expressed serious concerns about the impact of social media on trading decisions. He criticized Roaring Kitty and other traders with large social media followings for inciting emotions such as greed and jealousy among novice investors.
Tuchman said, “Social media has created this platform of jealousy, envy, need, and greed. That’s the bottom line.”
GameStop’s trading price was $25.09, up nearly 4% for the day.
Andrew Hayward, Editor”